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03-Jan-2018 03:27

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@darenbakst Daren Bakst studies and writes about agriculture subsidies, property rights, environmental policy, food labeling and related issues as The Heritage Foundation’s research fellow in agricultural policy. The federal government forces certain fruit and vegetable (and nut) growers to limit the sale of their goods. In July, a Michigan tart cherry farmer posted a photo on Facebook showing piles of his wasted cherries that will rot on the ground.

He says 14 percent of his cherries are going to be wasted due to the Department of Agriculture’s tart cherry marketing order that limits the supply of tart cherries.

Each individual order is initiated by industry and must be approved by a two-thirds vote of growers.

Each order is enforced by the USDA and is binding upon the entire industry in the covered geographic area, regardless of whether an individual agricultural producer has supported it.

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Electronic invoicing used to be a B2B topic while B2G (business-to-government) was hardly mentioned.

In those cases, the federal government has effectively created fruit and vegetable cartels and is blessing a form of price fixing.

These orders are supposed to stabilize prices for commodities.In short, by using government to impose an order, industry members opt for government compulsion rather than private cooperation.Some order provisions, such as attempts to manipulate the market through volume controls, would likely violate federal antitrust law absent government intervention.This summer isn’t the first time marketing orders have resulted in swaths of wasted tart cherries.

In 2009, 30 million pounds of cherries rotted on the ground, which is allegedly “enough to serve a cherry pie to every resident of Michigan, with 5 million pies left over.” The 30 million pounds of tart cherries restricted from that year constituted 65 percent of the market.Even Justice Sonia Sotomayor, who held that the government had not actually taken the raisins, explained in her dissent: “The Order may well be an outdated, and by some lights downright silly, regulation.